VanEck analysts have shared insights suggesting that Bitcoin [BTC] is likely to remain resilient regardless of the outcome of the 2024 US elections.
However, Mathew Sigel, an analyst at VanEck, has suggested that a Kamala Harris administration could potentially offer more favorable conditions for BTC compared to a continuation of the Trump presidency.
“It is conceivable that an administration led by Democrats could inadvertently create a conducive environment for Bitcoin.”
The latest September review by VanEck analysts highlighted the potential benefits of a Kamala Harris presidency for Bitcoin, emphasizing that it might accelerate the key structural factors that drive the adoption of Bitcoin.
“We posit that Bitcoin could see even greater advantages under a Kamala Harris administration than under a second term for Trump, given the potential acceleration of fundamental drivers that support Bitcoin adoption.”
Comparing the Biden-Harris Administration to Bitcoin
While Trump has shown significant support for BTC, his re-election could signal a positive shift towards more relaxed regulations in the sector.
Nevertheless, VanEck analysts suggest that a less favorable stance from a Harris administration could actually strengthen Bitcoin’s position in the market.
“In such a scenario, Bitcoin’s clear regulatory framework is likely to enhance its competitiveness compared to other digital assets.”
The concerns raised about structural issues, including the increasing US debts and fiscal deficits, are expected to persist regardless of the election outcome between Trump and Harris.
Analysts Mathew Sigel and Nathan Frankovitz pointed out that these challenges could further weaken the US dollar, historically creating a conducive environment for Bitcoin growth.
Despite the optimism, there are warnings about the potential extension of Operation ChokePoint 2.0 (OCP) under a Harris administration. OCP refers to perceived attempts by US agencies to limit access to the US banking system for crypto firms.
Recent events, such as the pressure on Silvergate, a crypto-focused bank, by the Fed, have raised concerns within the crypto industry. Tyler Winklevoss, co-founder of Gemini, expressed fears that continued restrictions could hinder the progress of the crypto sector in the US.
Amidst the challenges faced by US crypto firms, VanEck analysts remain confident in Bitcoin’s regulatory clarity to provide a competitive edge. At present, predictions on Polymarket suggest Harris (51%) holds a slight lead over Trump (48%) in the odds of winning the US elections.
Meanwhile, Bitcoin was trading at $63.1K and was approaching the 200-day Moving Average (MA) at the time of reporting.
Coinbase analysts anticipate that a surge above the 200-day MA could attract more traders and strengthen Bitcoin’s long-term bullish trend.